The economics of the sport of golf, a game of patience as well as strategy

 

MST Golf's is a one-of-a-kind listing and therefore would enjoy a scarcity premium.

 

 

THERE is a joke in the golfing community, ask a man to wake up before sunrise, there will be a million excuses.

Ask a man to tee off at dawn, he will be right on time. In the years I have played the game, I have witnessed the laziest people putting the utmost effort into improving their golf swing.

The amount of money spent on equipment, coaching, practice rounds in the driving range, club membership fees, travel and flight expenses to overseas golfing trips is mind-boggling.

This sport is by no means cheap and compared to other equipment sports like ping pong, it is incomparable.

However, once you start the game, you will be hooked for life. Every single round of golf is different.

The experience of playing with different people and courses makes it even more interesting.

So, what has all this got to do with business or the stock market?

Well, we have a highly anticipated

Main Market initial public offering (IPO) coming soon, which is the MST Golf Group Bhd listing.

For those who play the game, MST is a household name for golfers. It has been around for as long as I was born.

Over the years, MST has grown from a single retail store to controlling more than 51% of the local golf equipment retail and distribution market in Malaysia.

It is also the second largest golf retailer in Singapore. Although some older establishments such as RGT Golf, Desa Golf House, Transview Golf and others still exist in the market, none of them have seen the growth rate and expansion the way MST has done through the years.

A game of passion

Golf as a sport has been growing tremendously in the past century since its founding in Scotland in the 1860s. Today, there are over 80 million golfers and 30,000 golf courses globally.

The United States, Japan and South Korea are the top three countries which dominate global golf participation.

Based on the World Golf Report 2023 data, worldwide golf equipment and apparel market hit Us$20bil (Rm93bil) in 2022 of which Us$11.1bil (Rm51bil) was in equipment sales and Us$8.9bil (Rm41bil) in apparel sales.

There was also a major surge in worldwide sales in 2021 with an annual increase of more than Us$5bil (Rm23bil).

The sport is so popular that a seismic change in the golfing landscape occurred in 2022 when a new professional golf tour funded by the Public Investment Fund (sovereign wealth fund of Saudi Arabia) known as LIV Golf started and challenged the historic PGA Tour.

The prize fund up for grabs for a single season tournament reached a staggering Us$400mil (Rm1.8bil). Top-ranked golfers were offered hundreds of millions just to join LIV.

The PGA Tour reacted by banning professional golfers who played on the LIV golf circuit and multiple legal suits were filed between the two organisations.

Ultimately, a resolution appeared to be in sight following the news that a potential merger will go ahead between the two franchises. A Netflix documentary on golf, called Full Swing, depicts the sport’s evolution.

Golf as a sport has a huge market not only in terms of the annual growth rate of the number of players, but it remains the most lucrative sport in terms of the prize money and sponsorship deals.

We can see the continuous sponsorship of Rolex and other premium brands plastered all over golfing events.

Market leadership

MST’S IPO was oversubscribed by 5.28 times. This is a good performance considering it is a Main Market listing looking to raise Rm130mil for expansion.

At the IPO price of 81 sen, the market cap upon listing is expected to be Rm665mil. This is a rather huge IPO and not comparable to smaller ACE Market listings.

The question on some retail investors’ minds is that recent Main Market listings have been disappointing such as DXN Holdings Bhd, Radium Development Bhd and more recently Skyworld Development Bhd.

Some are concerned that the sentiment may impact this IPO as well. I am of lesser concern because the true value of the company lies not only in which market it lists but also its business itself.

Apart from the clear market leadership position of MST, many from the investment fraternity have used MR DIY as a peer comparison. I have also seen some other commentary using other retailers such as Innature, Senheng, Padini and others which are in the consumer retail space.

This led to the misconception that MST is listing at a very steep valuation. MST in fact is a specialty retailer and distributor of equipment for a global sport catering to the segment of consumers with the highest disposable income.

MST is very different from the other above-mentioned consumer retail companies which target the masses.

Furthermore, due to its track record and entrenched market share, we are unlikely to come across another golf equipment retailer and distributor company listing on Bursa Malaysia in the years to come. This is a one-of-a-kind listing and therefore, would enjoy a scarcity premium.

Ideally, I would like to see MST perform as well as MR DIY on listing day and the weeks to come.

However, the distinguishing factor that I believe would see MST sustain and do better for the longer horizon is because the MR DIY listing does not include the businesses in its other foreign markets which it expanded to such as Indonesia and the Philippines, etc.

For MST, the listing of the group includes all markets and MST is only starting to venture into Indonesia and Thailand; both are huge golfing markets by the sheer number of their population, popularity of golf tourism and burgeoning middle class.

A better peer comparison in terms of the valuation for MST would be Us-listed Topgolf Callaway Brand Corp.

It is one of the most popular golf equipment brands with a long history of being golfers’ favourite. Callaway has historically traded at an average forward price earnings (PE) valuation of 31 times. The immediate forward PE valuation is 23 times.

On the premise of the same valuation metrics, the likely intrinsic fair value for MST in 2024 is not too far off from TA Research’s recent report.

I often likened investing in the stock market to playing the game of golf. It is a game of patience, prudence and strategy.

A lot of practice and dedication is required to be good at the game.

Additionally, this is one sport where the biggest competitor is yourself and not your opponents. Consistency is the key, and one swallow does not make a summer. It is a long game.

Investing in the right company within a short span of time is meaningless if you cannot maintain the performance over a long duration of time.

Ultimately, the one who is regarded as a good investor, like a good golfer, is someone who consistently beats the market and surpasses their own performance over a long duration.

Golf is one sport that has a long-life span. It is a game that one can play until a ripe old age. Unlike badminton, football or basketball, the cardio element and companion requirements limit the longevity of the sport.

If your elderly parents are still insisting on playing badminton on a regular basis at the age of 70 and above, I would recommend you asking them to slow down.

Golf, on the other hand, would be one that requires little concern. If anything, the long outdoor session followed by the after-game chit chat session bodes well for the elderly who enjoy companionship.

Now, for those who have subscribed to the MST Golf IPO or are planning to invest on “Gong” day, I hope my article is able to shed some light on the economics of golf both for the uninitiated and for those who enjoy the game as much as I do.

But I must put forth a disclaimer; as an avid golfer myself, my views may be coloured by an inherent bias and lack the objectivity required for a fund manager.

Whether my love for the game would help with my investment or otherwise, we shall find out on July 20.

My best wishes to all fellow golfing aficionados, hopefully we can all reap the rewards of the long game. In the event this IPO goes out of bounds at tee off, we can always try asking Bursa for a Mulligan. 

Ng zhu hann

 

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UK loses its allure and faces big investment gap

 

Big job: Sunak greets Sweden’s Prime Minister Ulf Kristersson outside Number 10 Downing Street. The survey underscores the challenge Sunak’s government has in reviving economic growth with a labour force that has shrunk since the pandemic. — Reuters

 

LONDON: The United Kingdom (UK) has fallen six places in the global economic competitiveness rankings because business leaders have lost confidence in the country, due in part to “government incompetence”.

The annual World Competitiveness Ranking from the International Institute for Management Development saw the UK plunge from 23rd to 29th out of 64 countries.

In a separate analysis, the Institute for Public Policy Research (IPPR) warned that years of underinvestment are holding back growth and harming ambitions to build up green industries.

It estimated the nation would have received an extra £560bil (US$720bil or RM3.3 trillion) in real terms had investment from private firms and the government stayed at the Group of Seven average since 2005.

“The UK is experiencing a debilitating case of investment phobia, and the government’s aversion to investing to seize future opportunities is stopping us from getting out of the growth doom loop we find ourselves in,” said George Dibb, associate director for the economy at IPPR.

The figures underscore the challenge Prime Minister Rishi Sunak’s government has in reviving economic growth with a labour force that has shrunk since the pandemic.

Political leaders from all parties are concerned about the UK’s stagnating productivity and sticky levels of inflation, which have undermined the confidence of investors both in stocks and in businesses.

In the competitiveness rank, the UK lost ground on all the key indicators, which is a worrying sign for the government, which wants to attract investment to boost growth.

Respondents said the country had become more bureaucratic, the government less efficient, and the workforce less productive.

Denmark held on to the top spot in 2023, and Ireland jumped nine places to second. Switzerland, the Netherlands and Singapore completed the top five.

“The dramatic drop in the survey indicators suggests a systemic pessimism about the future,” Arturo Bris, lead researcher on the rankings and director of the IMD World Competitiveness Centre, said in an interview. “The deterioration in business sentiment says executives are losing confidence in the country.”

More than 6,400 senior executives from across the world were interviewed for the report. Just 3% of respondents said the competency of the government made the UK an attractive destination for investment.

“Government incompetence, poor workplace culture, and restrictive immigration laws were among several reasons why the UK fared badly,” the report said.

The report also found that the UK is becoming increasingly bureaucratic, despite the government’s pledge to use “Brexit freedoms” to cut regulation. The UK fell 12 places in the bureaucracy sub-ranking from 15th to 27th, while France climbed from 44th to 41st, Bris said.

France remained less attractive than the UK, dropping five places to 33rd in the rankings. Germany fell seven places to 22nd.

The survey was conducted between February and May but reflected the political chaos of 2022, a year in which the UK got through three prime ministers and four chancellors.

The struggling economy, with inflation higher and the labour market tighter than other leading industrial nations, will have also affected sentiment badly, Bris said. — Bloomberg

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The Bankrupting of America

 

 

US debt ceiling impasse and a default’s impact on Malaysia remains a concern

 

US debt issue may affect global demand

PETALING JAYA: With the United States currently being embroiled in a debate as to whether it should raise its debt ceiling before the June 1 deadline, concerns over the impact on Malaysia of the world’s largest economy defaulting on its borrowings were understandably raised among certain quarters.

This is all the more relevant when one considers the fact that the United States is Malaysia’s third-largest trading partner, with World’s Top Exports reporting that Singapore, China, the United States, Japan and Hong Kong contributing to more than half of Malaysia’s export revenue – 51.8% to be exact – in 2022.

The website also revealed that the United States accounted for US$38bil (RM173.5bil) or 10.8% of Malaysia’s export income in 2021, again behind only Singapore at 15% and China 13.6%.

Thus, it is not difficult to understand the oft-used adage, “When the US sneezes, the world catches a cold”, including of course, Malaysia.

Chief economist for HSBC Global Research Frederic Neumann had remarked on Monday that should the debt ceiling issue be drawn out of proportion, it could lead to a depression of US growth, and adversely impact Malaysian exports stateside, possibly even reducing global demand because of an increase in financial uncertainty.

The current debt ceiling is known to be at US$31.4 trillion (RM143.4 trillion), and reports from yesterday indicated that a resolution could be imminent.

Shedding more light on the matter, Centre for Market Education chief executive Dr Carmelo Ferlito said the debt ceiling can be raised again, but only if it can be voted through the House of Representatives, which has a Republican majority.

“The Republicans are trying to use the deadline to pressure President Joe Biden to agree to spending cuts.

“On April 26, the House approved a bill to raise the debt limit by US$1.5 trillion (RM6.85 trillion), but only on the condition that spending would be cut to 2022 levels and then capped at 1% growth per year,” he told StarBiz.

A simple analogy to illustrate the ceiling standoff is the case of a parent providing a teenage child with a credit card.

If the teenager exceeds the spending limit, and asks the parent for an extension of credit, it is only natural for the parent to go over the spending habits of the child before deciding to provide more credit, which has to be repaid.

If the ceiling is not raised and the US officially defaults, Ferlito said the consequences for other economies – including Malaysia – should be looked at more in the light of a general financial turmoil that the default could cause rather than the more immediate link with American bonds that firms or governments may have. 

“We do not see direct repercussions on Malaysia; rather, we foresee indirect effects in case of (a US) default, coming from a global financial turmoil,

He explained: “We do not see direct repercussions on Malaysia; rather, we foresee indirect effects in case of (a US) default, coming from a global financial turmoil.

“If there is a default, which is doubtful, there will be a financial shock and the entity of such a shock will determine how much it would impact Malaysia.”

He elaborated that a potential default and its effect on an exporting country like Malaysia can be seen as two separate phenomena, a sovereign debt default; and the business relationship between private entities.

Ferlito added: “Even if the US defaults, private companies can still transact independently from the scale of the mutual business relationship. What we have to fear more are the indirect consequences.”

Economists at Coface Services South Asia-Pacific Pte Ltd, Bernard Aw and Eve Barre, believe a breach in the debt ceiling would result in outlay cuts currently funded with borrowing while the US dollar would weaken, elevating yields.

“Such a default would also have an impact on global financial markets, which rely on the dollar as the world’s primary reserve currency and as a safe asset.

“For Asian exporters, a weakening of the dollar against their currencies would dampen their competitiveness, including for Malaysia as the United States represents its third-largest export market up to 2022,” they told StarBiz.

Although acknowledging that a negative impact on the US economy from reducing public spending would depend on the extent of those cuts, they pointed out that if an agreement leads to deep spending decreases, economic growth for the United States could be slower than the already sluggish 1.2% that Coface is forecasting for 2023.

Aw and Barre opined: “This would have a direct impact on Malaysia by reducing US demand for Malaysian goods but also on foreign investment.

“In 2021, the United States was the first source of foreign direct investment flows to Malaysia, accounting for roughly a third of the total.”

On the flipside, they projected that sharp cuts in US public spending are unlikely to be approved by the Senate, as it is controlled by the Democrats.

Meanwhile, approaching the problem from an investment perspective, chief investment officer for Tradeview Capital, Nixon Wong, echoed the economic view that a US default would have global ripple effects, including on the FBM KLCI.

“A default on US federal debt would disrupt imports of electronics and manufactured goods from Chinese factories to the United States, resulting in slower growth of orders in the entire supply chain that includes Malaysia.

“Reduced spending in the United States would lead to slower aggregate demand and import growth globally,” he said.

The effect could likely be seen on export-oriented companies on the local bourse, he said, including manufacturers of electrical and electronic and rubber products, as well as in the producers of metal, optical and scientific equipment.

He added that although Malaysia’s trade volume with the United States may be smaller compared to China, the repercussions from reduced US spending would still impact Malaysia’s exports, whether directly or indirectly.

History has shown that American political leaders have always managed to raise the debt limit before it becomes a crisis, and it is likely that this pattern will continue, Wong said.

“While there are debates and partisan divisions in Congress, it is expected that Republicans will seek spending cuts before supporting the raising of the debt ceiling.

“After all, the main agenda is to prevent a catastrophic event or severe fallout in the United States and global financial markets,” he observed. 

By KEITH HIEW

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 US urged against passing risks to world amid growing chance of a US default

A Chinese official on Tuesday warned of the significant spillover effect of US domestic policies and urged Washington to avoid passing on domestic risks to the rest of the world just to protect its own interests. The comment came after US leaders failed to reach a deal on the debt ceiling issue, with the deadline to avert the first-ever default approaching rapidly.

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Money in housing, cautious optimism in industry

CLICK TO ENLARGE

 

PETALING JAYA: The property market is expected to remain cautiously optimistic in 2023, with the gradual increase in the Overnight Policy Rate (OPR) since last year likely to affect market activity, particularly on residential demand, says the Valuation and Property Services Department.

The outlook of the workforce in the construction sector and the increase in the price of building materials will also affect supply.

Department director-general Abdul Razak Yusak said internal and external factors, such as economic and financial developments both globally and in the country, would also have an impact on the real estate sector and the sentiment of industry players.

“Looking at the national economy which is projected to grow by 4% to 5% in 2023, supported by continued resilient domestic growth prospects, the property market is expected to remain cautiously optimistic in 2023,” he said.The first quarter of this year alone saw over 89,000 transactions worth RM42.31bil, which was higher than those recorded in pre-pandemic years, he said.

“The seasonal factor in house purchases, which is usually low at the beginning of the year, the increase in OPR and the decline in Consumer Sentiment Index (CSI) are among the factors that contributed to a decline in residential market activity in particular,” he said.

New residential launches, said Abdul Razak, were also indicating a cautious sentiment among developers, with the number recorded at nearly 4,700 units, which was less than those in previous years, while sales performance was moderate at 25.7%.

The decrease in new launches was in line with the decrease in the number of developers’ licences and advertising and sales permits of new housing sales and renewals approved by the Local Government Development Ministry from 5,641 in January and February last year to 2,911 during the same period this year, he added.

Johor recorded the highest number of new launches at 2,077 units or about 45% of the nationwide total with a sales performance of 24.9% while Selangor had the second highest at 791 units or 17% share with a sales performance of 37%.

Abdul Razak said in line with the cautious sentiment among developers, construction activity had slowed down in the first quarter of 2023.

“This is seen as a positive development to balance the unsold supply in the market,” he said, adding that the residential and serviced apartment overhang status continued to be positive.

“The number of overhang units has decreased to 26,872 units worth RM18.31bil in the first quarter of 2023 as a result of market absorption in all states, except Selangor. The volume and value of residential overhang decreased by 3.2% and 0.5% respectively compared with the fourth quarter of 2022,” he said.

Selangor recorded the highest number and value of overhang units, with 4,995 units worth RM4.47bil, followed by Johor at 4,759 units worth RM3.94bil, Kuala Lumpur with 3,423 units worth RM3.13bil, and Penang with 3,138 units worth RM2.48bil.

The purpose-built office (private) and shopping complex segment in Kuala Lumpur and Selangor, said Abdul Razak, should be given attention as there was a surplus of space, which was also expected to be severely affected by the inflow of new supply this year.This is as Kuala Lumpur recorded the highest available private purpose-built office space at 2.53 million square metres involving 290 buildings, followed by Selangor with 1.40 million square metres involving 192 buildings.

For the shopping complex segment, Selangor recorded the highest available retail space nationwide at 0.79 million square metres with 146 buildings followed by Kuala Lumpur at 0.56 million square metres with 97 buildings.

“Developers need to be more thorough and cautious before planning any new development and local authorities need to evaluate in detail before approving each new project,” said Abdul Razak.

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EPF - Keeping it safe and sound

 

 The 5.35% dividend announced last year would have ranked the EPF 22nd in terms of return. — Bloomberg

 

 

The 5.35% dividend announced last year would have ranked the EPF 22nd in terms of return. — Bloomberg

Rate of return from the retirement fund well above domestic headline inflation rate

RECENTLY, the Employees Provident Fund (EPF), the nation’s largest pension fund, declared a dividend rate of 5.35% for conventional savings for 2022.

This was a lower sum compared with 2021’s 6.1%. Over the course of a decade, EPF dividends for conventional savings had ranged from a low of 5.2% in 2020, to a high of 6.9% in 2017.

The perennial question has been just how does the dividend by the EPF compare with individual asset class funds like unit trust which allows investors to gain bigger exposure in their investments by diversifying their asset holdings.

Whitman Independent Advisors founder and managing director Yap Ming Hui says while some unit trusts can provide investors with a higher return than EPF ranging from 15% to 20%, the fund volatility is also high where unit trusts’ returns can fall as much as 30% to 40% in a short time.

“There are many types of unit trusts, namely the equity unit trust, fixed income unit trust, and money market unit trust. If you have a long term view on the investment, say 10 to 15 years, then equity unit trust would have better returns than the EPF.

“Generally, the returns for equity investments are higher than fixed income assets like bonds. Hence, the rate of return and risk levels are dependent on the type of unit trusts that you buy into,” he told

For 2022, EPF’S total gross investment income came in nearly 20% lower year-on-year (y-o-y) at Rm55.3bil compared with Rm68.9bil in 2021 due to the vagaries of the capital markets at home and abroad.

Foreign investment contributed 45% of the EPF’S total gross investment income and made up about 36% of the EPF’S investment assets.

In terms of asset allocation, 47% of EPF’S investment assets were in fixed income instruments in 2022, while equities made up 42%.

Real estate and infrastructure as well as money market instruments took up a 7% and 4% stake in EPF assets, respectively.

Last year, Rm30.5bil, or 55% of the EPF’S total gross income derived from the equities asset class. This was a 26% y-o-y decline from the Rm41.1bil recorded in 2021. Foreign listed equities were the main driver for this asset class, registering a return on investment (ROI) of 9.3%.

The premier retirement savings fund has nearly half of its total asset allocation in fixed income instruments which includes Malaysian Government Securities (MGS) and equivalents along with loans and bonds. This portfolio contributed an Note: List of unit trusts launched prior to 2018 Returns in the calendar year 2022. Source: Novagni Analytics graphics income of Rm18.2bil, or 33% of the EPF’S total gross income.

Moreover, the real estate and infrastructure portfolio recorded an income of Rm5.6bil with an ROI of 10.5%, whereas gains from money market instruments stood at Rm1bil with an ROI of 3.5% in 2022.

The EPF dividend when compared with the list of 681 unit trusts generally has performed well.

With the exception of 2019 and 2020, the dividend paid by the EPF in 2018 and 2021 puts the retirement fund dividend in the top 25% of the unit trust industry.

The 5.35% dividend announced last year would have ranked the EPF 22nd in terms of return. The same could be said when EPF returns are pitted against the other 108 mixed assets (balanced funds) in the country.

The year 2018 was EPF’S best performing year as its returns were the highest when compared with balanced funds. Apart from 2019 and 2020, the dividends issued by EPF were in the top 20% of the balanced fund market. Last year, EPF ranked eighth for its return rate.

- The Star Malaysia18 Mar 2023By elim POON elimpoon@thestar.com.my 

 

EPF a more stable investment option than unit trusts

Financial Planning Association of Malaysia chief executive officer Linnet Lee states the EPF is a more stable investment option than unit trusts as it has a track record for its return rate.

“As soon as a person takes his or her money out of the EPF or their bank account, this person must understand that there are risks already, namely market risks, interest rates fluctuation, and currency exchange risks for funds that have overseas investments.

“The EPF has lower risk levels as it is obligated to provide a minimum dividend rate of 2.5%, as outlined in the EPF Act 1991, even if market conditions do not look good. For the last 10 years, the EPF’S dividend rate has always been above this level,” she says.

Despite the bearish and volatile markets last year that led to EPF’S lower gross investment income performance, the EPF’S return rate in 2022 outmatched many unit trusts and financial market’s performance.

Morgan Stanley Capital International (MSCI) World Index for instance, recorded a 17.7% decline in its 2022 performance while the MSCI Emerging Markets Index fell by 19.74% last year.

On the other hand the FBM KLCI shed 72 points or 4.6% y-o-y in 2022, with a high of 1,618.5 and a low of 1,373.4 for the year.

The rate of return from the retirement fund was also well above the domestic headline inflation rate averaging at 3.3% last year as well as the return on the 10-year MGS which yielded 4.07% at the end of 2022.

However, some may argue that unit trusts offer greater flexibility in terms of investment and contributions, as investors are exposed to different investment themes matched with their risk appetite.

The common investment products offered by unit trusts are money market, fixed incomes, property, and equities.

On this note, Tradeview Capital Sdn Bhd portfolio manager Ng Tzyy Loon says while this may be the case, many individuals do not have time to do the necessary research before buying an investment like unit trust.

“For these investors, the EPF is a very convenient tool which often becomes their default choice. It is actually not an easy feat for EPF to be able to deliver a consistent return of 5% to 6% over the years, given that the fund size the organisation is managing is about RM1 trillion,” he says.

In choosing the right unit trust, Ng opines that investors should opt for one that has a more flexible mandate and outperforms its investment benchmarks.

“Investors need to have the mindset that they are taking risks to get a better return when they opt for unit trusts instead of the EPF. A unit trust with a flexible mandate means that the fund manager has more room to make investment decisions in different market conditions.

“For example, fund managers can avoid gold mining companies in an equity unit trust, unlike in a commodity unit trust, should prices of precious metals fluctuate in a particular year.

“Additionally, a unit trust that has consistently outperformed its investment benchmark is reflective of the skillfulness of the fund manager in managing the fund,” he says.

Nevertheless, as Yap pointed out, investors need to take into account the various fees and expenses, which can potentially reduce returns, accompanying a unit trust fund. There are altogether three main fees when buying a unit trust; sales charge, fund management fee, and trustee fee.

“Sales charge are front end fees that can go as high as 5.5%. There is also the fund management fee of about 1% to 2%. Lastly, investors are also charged with a trustee fee of less than 1%,” he says.

While it seems that there are no outright fee charges for EPF members, the returns received by account holders is net expenses.

“All the expenses incurred from hiring analysts, fund managers, and compliance-related are reflected in the income statement. These fees can be lower that that of unit trusts” says Ng.

All in all, having a well-diversified portfolio is the key to protect one’s wealth, notes Lee.

“If you are looking to build a retirement nest egg, you need to diversify your money into different asset classes. Hence, it would be good to make contributions in the EPF and at the same time invest in unit trust funds,” she says. 

 - The Star Malaysia18 Mar 2023 

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Equity Funds with Annualised Return of 6.5% And Above over 10-Year Period

Fund Name	Shariah Based	Nature of Funds	10-Year Return (%)	10-Year Annualised Return (%)	Fund Volatility Class (FVC)	3-Year Fund Volatility Factor (FVF)#
PUBLIC GLOBAL SELECT FUND	-	Foreign	151.35	9.65	HIGH	16.1
PUBLIC ISLAMIC OPPORTUNITIES FUND		Domestic	127.87	8.58	VERY HIGH	28.1
PB CHINA PACIFIC EQUITY FUND	-	Foreign	105.03	7.44	HIGH	19.0
PUBLIC CHINA SELECT FUND	-	Foreign	101.27	7.24	VERY HIGH	19.6
PUBLIC SMALLCAP FUND	-	Domestic	98.68	7.10	HIGH	15.9
PUBLIC FAR-EAST ALPHA-30 FUND	-	Foreign	94.84	6.89	HIGH	16.3

Source: Lipper, as at 28 Feb 2023
# Based on the fund's portfolio return as at 31 Jan 2023 (Source: Lipper)